Renewable Energy Corporation (OSE: REC) started Wednesday trading on the minus as it announced planned temporary shutdowns of up to 50% of capacity of the monocrystalline wafer facility in Glomfjord, Norway. This comes on top of earlier announced measures of a 60% halt at Herøya and REC now expects to produce 105 MW multi- and monocrystalline wafers in Norway in Q1 2012.
Investors first focused on the ”continued weak spot market for wafers”, which was given as the reason for the production halts, but then started hoping these measures are a mere prelude for more cuts and permament closures of the unprofitable facilities. REC’s Singapore factory and US polysilicon facilities operate at full capacity.
On Monday the long awaited industry consolidation seemed to get started as Chinese company LDK Solar Co. made a takeover bid for Germany’s silicon-based solar cells and panels manufacturer Sunways AG. With inverters, modules and solar systems production, Sunways AG is a technology leader in photovoltaics industry and as such obviously interests the Chinese. Sunways and LDK have been cooperating for a long time with LDK supplying wafers to Sunways. LDK has also been making big losses lately.
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